The goal of this research is to come up with a new optical structure for the generation of multilevel pulse amplitude modulation (PAM-4) signalling, which is used for optical interconnects and data center networks. The Fano effect is made with a structure made up of a 4x4 MMI coupler, feedback waveguides, and phase shifters. For the production of PAM-4, we employ the Fano effect. The new proposed approach can reduce power consumption and extend the linear region of the device transfer function compared with conventional approaches based on Mach Zehnder Interferometers (MZI) and ring resonators. We show that an extreme reduction of power consumption of 3 to 30 times, compared with the conventional structure based on MZI and ring resonators, is achieved. In addition, the proposed structure based on silicon wave guides has the advantages of extreme high bandwidth, large fabrication tolerance, and a compact footprint. The proposed structure can be applied to generate the PAM-4 based on the Fano effect with low power consumption, and it is suitable for complex systems with a lot of transceivers. The device is numerically simulated and designed using the Finite Difference Method (FDM) and Finite Difference Time Difference (FDTD). The PAM-4 structure based on silicon waveguides can be compatible with CMOS’s existing technologies.